The second €100 million tranche of a total €200 million loan agreement was signed on 31 July between the Republic of Cyprus and the European Investment Bank (EIB) for the financing of major infrastructure projects across Cyprus.
The agreement was signed at the ministry by Minister of Finance Makis Keravnos and EIB Vice President Kyriacos Kakouris.
In his address, Kakouris said that this loan does not just provide financial support for a specific project. "It represents our shared commitment to creating better, safer, and more sustainable infrastructure that will significantly improve the daily lives of the people of Cyprus," he said.
He noted that the investment will play a key role in enhancing regional connectivity and accessibility, sustainable urban mobility, road safety, and the development of climate-resilient transport infrastructure. "These upgrades will bring tangible improvements to the lives of Cypriots and contribute to the sustainable development of the country," he stressed.
Furthermore, Kakouris noted that the EIB does not just provide funding but also offers specialised technical assistance, working closely with the relevant authorities to ensure optimal project implementation. He added that EIB financing comes with the best possible terms the Ministry of Finance can secure: long-term loans with extended grace periods.
On his part, Keravnos said that the signing of the agreement is not just a formal financial transaction, but "yet another demonstration of the relationship of trust and effective cooperation we have developed over the years."
According to the Minister, the projects to be financed, estimated at a total cost of around €400 million, are expected to be implemented during the period 2024–2029. Some are already under construction, and others are co-financed by the EU through the Connecting Europe Facility and the THALIA 2021–2027 Cohesion Policy Programme.
"These are projects of strategic importance, forming part of our core development policy, primarily aiming to improve road safety, accessibility, and the quality of life for citizens," said Keravnos.
The Finance Minister also added that through favourable financing terms and long-term perspective, the EIB enables the implementation of impactful projects that address the country’s real needs and is a vital tool and steadfast supporter in achieving development goals.
"I look forward to the full commitment of all stakeholders for the timely and effective implementation of the projects, so that in the coming years, Cyprus' road network will continue to significantly contribute to a more sustainable, safe, and prosperous country for all. I am confident that through our collective efforts, these projects will deliver meaningful and tangible benefits for Cypriot society and the economy," he concluded.
Representing the Minister of Transport, Communications and Works, Director of the Public Works Department, Eleftherios Eleftheriou, said that developing Cyprus’ core land transport infrastructure remains a priority for the department, aiming to enhance the competitiveness of the Cypriot economy and address the challenges of climate change.
He highlighted that the current loan agreement is a framework loan, which provides the necessary flexibility in selecting the projects to be financed.
He also noted that over the past 25 years, the EIB has supported cumulative projects in Cyprus exceeding €1 billion.
A Finance Ministry press release said that the co-financed projects under the loan agreement include interventions in major road infrastructure throughout Cyprus. These specifically relate to the construction and upgrading of highways, urban and rural roads, bridges, and tunnels. The plan also includes upgrades to roundabouts, installation of road lighting systems, noise barriers, road safety measures, and improvements to existing road infrastructure.
